RALEIGH - United States Attorney Frank D. Whitney announced that four individuals
associated with a
bankrupt $15,000,000 venture capital company were indicted by a federal grand jury in Raleigh on Thursday,
February 17, 2005. Named were STANLEY H. VAN ETTEN, 43, of Bridgestone Drive, Orlando, Florida
(formerly of Raleigh); BRENT E. WOOD, 42, of Cary, N. C.; TOM D. EILERS, 72, of Cary, N. C.;
and DIANE
W. PACE, 42, of Cary, N. C. They were named in the nine-count indictment for offenses related to the
bankrupt Mayflower Venture Capital Fund III, LLC ("FUND III").

The indictment charged conspiracy, wire and mail fraud, and
money laundering related to the use of approximately $15,000,000 collected by FUND III from about 145 investors
between February, 2000 and
November, 2000. According to the indictment, a series of venture capital companies using the name "Mayflower" were
established between 1996 and 2000 for the purpose of investing in start-up companies and on-going
businesses. All were partially owned, principally controlled by, or otherwise related to STANLEY H. VAN
ETTEN. FUND III was specifically established to invest in a planned initial public offering (IPO) by the Durham, N. C., based company named BuildNet. FUND III was managed by a
"Management Committee" consisting of defendants DIANE W. PACE, TOM D. EILERS, BRENT E. WOOD,
Esq., John Brothers, and others, and had offices in Raleigh, N. C.; Dallas, Texas; London, England, and Zurich,
Switzerland.

The indictment sets forth that DIANE W. PACE, was an Investment Advisor and Contact Person; TOM D.
EILERS, was the Certified Public Accountant; BRENT E. WOOD, was the Lawyer; an unnamed person was an
Investment Advisor and Contact Person; and John Brothers, was an Investment Advisor and Contact Person.

The indictment further alleges that STANLEY H. VAN ETTEN, although not a named Fund Manager or
member of the Management Committee, controlled and directed the use of funds, while DIANE W. PACE,
M.B.A., and TOM D. EILERS, C.P.A., managed bank accounts and fund records. John Brothers and two other
unnamed persons solicited investors and worked out of the Dallas, Texas, office. BRENT E. WOOD served as
legal counsel for the fund, as well as a member of the Management Committee.

According to the court documents, the object of the conspiracy was for FUND III to obtain approximately
$15,000,000 from investors for investment in the BuildNet IPO. Subsequently, the funds were fraudulently
diverted to other unauthorized investments and purposes without the knowledge or consent of the investors.
Overt acts included a series of "updates" the defendants sent to investors between about May, 2000, and
November, 2000, wherein they falsely represented and assured the investors that FUND III money was
exclusively reserved for the BuildNet IPO. In fact, the FUND III money had already been used for other
purposes without the knowledge or consent of the investors. According to the court records, the scheme began
to unravel when BuildNet withdrew their IPO, and FUND III was unable to return the investors' money as
promised.

This is the third indictment of former International Heritage Incorporated (IHI) Chief Executive Officer STANLEY
H. VAN ETTEN. Trials are pending against VAN ETTEN from his involvement in the operation of International
Heritage Inc., "IHI", a multi-level marketing company determined to be a pyramid scheme by state and federal
regulators. A separate indictment related to insurance and mortgage fraud is also pending trial against VAN
ETTEN.

As of this date, five former VAN ETTEN associates have pleaded guilty to IHI related charges and other
matters.

Investigations of the IHI, Mayflower, and other VAN ETTEN- related cases were conducted by the Federal
Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division, with the assistance
of the Securities and Exchange Commission (SEC), Atlanta, Georgia. Assistant U. S. Attorneys J. Gaston B.
Williams and Clay C. Wheeler are prosecuting the case for the United States.